Tuesday, 15 January 2013

How HMV can save itself


This is a piece I wrote almost exactly a year ago. I've left it intact as I think it's all still relevant, but please bear this in mind.

Not too long ago the flagship HMV shop on Oxford Street was a destination. If you were meeting someone in town you would arrange to hook up in the album section, maybe between B and D to browse the Beach Boys or Dinosaur Jr’s wares while your friend struggled with the vagaries of the Central Line. Those sections are still there, but the last people I arranged to meet in HMV were a pair of Fifties pop enthusiasts, both in their seventies, to whom a rendezvous at the store has become an old habit that they find hard to break.

The shop is so unattractive, and so unsure of its purpose, that it is wholly uninviting. I popped in at Christmas to buy some last-minute presents and breathed in what atmosphere there was. I saw two-tone grey carpet that may have been there since the Eighties. The aisles were ludicrously wide, as if they still expected people to jostle, three deep, to rifle through the CD racks. Staff wore shapeless, branded black T-shirts, meaning that a genre expert in the basement was hard to separate from someone who only started last week. When I looked for the Beach Boys Smile deluxe box-set I only found a piece of plastic in the racks that said “please ask at counter”. If you can’t display a beautiful item like that, you’re not doing your job properly.

The vinyl section I couldn’t find at all, but I’m assuming that there is one, tucked away in a grotty corner for minorities. Except that fetishists such as me will go to Sounds of the Universe, a nearby shop that advertises its vinyl products in the window, which plays records if you want to hear them, and where you’re likely to hear something new, something to raise your pulse, rather than the Rihanna album that you just heard in a café or a cab five minutes ago. The way we consume music has changed completely in the past ten years, but you’d never know it from walking around HMV.

Last summer the Voices of East Anglia blog posted a set of photos of the original HMV Shop on Oxford Street through the years. They were quite beautiful. This shop is now a branch of Foot Locker, but the present HMV could pick up plenty of aesthetic tips from its heritage. From the exterior signage, to the listening booths, to the specialist sections (whatever the “Cosmopolitan Corner” and “Personal Export Lounge” were, you’d definitely want to hang out there), it looked inviting and exciting.

Record sales back then were buoyant enough to pay for the grand staircase in the middle of the store. The HMV Shop had been opened by the Gramophone Company in 1921, ten years before that label amalgamated with Columbia to form EMI, Britain’s most successful label. For decades it thrived, but the digital age has seen the market for physical music product drop precipitously. It isn’t HMV’s fault that Boney M’s Mary’s Boy Child sold 1.6 million copies inside a month in 1978, while Orson’s No Tomorrow notoriously reached No 1 with sales of fewer than 18,000 in 2006.

The key to HMV’s survival, even on a much-reduced scale, isn’t in a hankering for the past. Many shops — chain stores in particular — have struggled or disappeared in recent years. However, other shops are thriving. Last year I did a short trip around the country to check out the state of record shops. It was invigorating. With the exception of a couple, whose owners were in their dotage, all were staying afloat, and some were doing better business than ever before. It isn’t a myth that teenagers are buying vinyl and obsessing over it. Records are cool objects to own — anyone can have 20,000 songs dangling round their neck, but not everyone can own a limited edition White Stripes seven-inch or an original mono copy of Jimi Hendrix’s Are You Experienced?. These are desirable items and need to be sold in the right environment.

In Dalston, East London, two new record shops — the ramshackle Eldica and the well-appointed Kristina — have appeared in the past year or so. Down the road from them is Rough Trade East, a vast store, just a few years old, that has already become an institution. It has “world famous weekly mail-outs” on new releases, exclusive mixes and CDs on sale, an Album of the Month club (with invitations to members-only events), and in-store happenings that include book launches and debates on the future of pop.

Could HMV compete with Rough Trade? No, it has a bigger and broader customer base. Instead, it should let Rough Trade have a concession — after all, Rough Trade’s branches are way west and east of Oxford Street. HMV should act like it is the parent of Rough Trade, Kristina and Sounds of the Universe, because that’s exactly what it is. It should be proud of its history. The original store has a plaque on the wall that reads “Opened by Sir Edward Elgar in July 1921” — that’s impressive.

If vintage clothes can be bought in Selfridges, then why not vintage sections in HMV? There are plenty of second-hand dealers in London, working out of lock-ups or from home, who would not only have a ready supply of vintage vinyl but would love to have a Central London location in which to sell it. Some concessions could change on a bi-monthly basis, like an art show; bands could curate some departments, recommending their favourite music, and decorating the place as well as DJing or doing in-store shows. Domino Records ran its own radio station for a week last summer out of its offices in Wandsworth and it felt like an event — there’s no reason why HMV couldn’t do the same.

Beyond the CD racks HMV’s magazine section is an embarrassment. Yes, they stock the quarterly Elvis: the Man and his Music, which I buy every issue of, but they also stock Heat. Who would go into HMV to buy a celebrity gossip magazine? Borders, which used to be across Oxford Street from HMV, had an extensive magazine section, which is now entirely absent from any major West End store; you can buy Fantastic Man for an interview with Hot Chip’s Alexis Taylor from a stall in Islington, but nowhere on Oxford Street. It’s an open goal. Like the HMV of old, Borders was a destination purely for its magazine selection. Stock them and people will browse, spend time and probably end up buying before they leave. It gets customers through the door and, looking at the wide open spaces, HMV isn’t doing that right now.

Other than Rough Trade East, the shop that HMV should really be looking to for ideas is a few doors away. The basement of Topshop is like a crazy souk, only navigable through practice and feminine intuition, and within it are plenty of concessions, vintage areas and shops within shops. Topshop, which once appeared way below HMV on the cool register, has re-invented itself by moving quickly to get involved with designers and start-ups who are creating a bit of buzz. An example is Wah Nails, a super-hipster nail salon that has its main store in Dalston and now has a concession in Topshop. It opened in 2010; only a handful of blogs had written about it. Then a couple of months later there it was in Topshop.

Selling music isn’t quite like selling clothes, but HMV’s clumsy embracing of technology — dumping the CDs and vinyl to sell MP3 players and assorted hardware — is short-termist; there are plenty of other shops already doing just that. The internet, however, could provide it with some much-needed cool. Blogs have helped Topshop to get new items and ideas into the store before even keen fashion watchers know about them. HMV could look to aspirational, tastemaker sites such as Pitchfork and Popjustice to recommend music. Beyond that, there are plenty of well-written, enthusiastic music blogs that HMV could take a chance on. It’s a two-way street. At the moment nobody would want their music or playlists to be associated with HMV’s grubby-grey carpet-tiles.

It isn’t just about what you buy, but how you buy it. There is a café in the basement of Topshop. Rough Trade has a café and a bar too. If you can meet friends, chat over a coffee, swap notes on the latest sound sensations, and then purchase those sounds, having a seated social hub for groups of friends will bring in more revenue than lone customers wandering the empty aisles.

Again, HMV could look east and steal some ideas from the Pacific Social Club cafe on Clarence Road. The walls there are decorated with vintage 78-sleeves, and there is a stack of vinyl that you can put on yourself as you eat your banana and passion fruit on toast. The café could include listening posts, using Spotify and iTunes. There must be a way for HMV to work with these digital distributors.

The details can be discussed later. At the moment HMV is little more than a vast shop window for Amazon; you can browse the racks, make a mental note of what you want, then go home and buy it online slightly cheaper. It needs to change how it sells more than what it sells. Customers need to go in thinking of HMV’s expertise — they need to think of the shop in the way that people thought of John Peel. Anybody can buy what they already know from Amazon; they need a gatekeeper.

At £160 million in the red, it wouldn’t hurt HMV much more to take a chance on a revamp, splash a couple of million re-inventing the Oxford Street store, and hope that, like Topshop, it attains trendsetting status, with its influence trickling down to regional branches. Its one major advantage, and one that it hasn’t begun to capitalise on, is that people genuinely like HMV. They want it to survive. I don’t remember anyone getting particularly weepy over the demise of Zavvi, Tower, or even Virgin. HMV, like EMI or the BBC, is a British institution that’s fun to knock, but nobody would ever want it to disappear.

40 comments:

  1. About 18 months ago, I visited that HMV, I went up escalator, down lift, up and down escalator, and found myself accidentally in the Album section.

    Again, it was a cold and sorrowful area, little lighting, and no fun. Whereas the "Sale" CD section was all pressure and life by comparison. Still, nothing you would actually want...

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  2. Great post! I agree with you and love your thoughts. I do also think they need to re-think their prices too, some CD's are much more than in supermarkets. Let's hope they take note of this :)

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  3. I went into HMV on Moorgate in London recently looking for Mantaray by Siouxsie, by no means an obscure record, it's her latest CD, albeit 18 months to two years old. Not a chance. Racks and racks of games and DVDs, quite a lot of tech stuff - phones, ipods, who knows what.

    And there - a rack or two of CDs, in no apparent order, under headings like '3 for £10'but tat, greatest hits stuff etc.

    Staff wandered around looking bemused, not catching the eye of customers to see if help was needed.

    I left the shop and bought it from Amazon.

    I'm afraid the death of HMV was inevitable - sad that nobody read your excellent article in time.

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  4. Absolutely spot on, Bob. If only they had been reading a year ago.

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  5. As an avid music collector in my late 50s, my wife recently commented on the fact that I walked past an HMV without even hesitating. "Aren't you going in?" "Waste of time. They have anything new". Then last summer, in a visit to London, I spent most of the afternoon searching for the Rough Trade store. I browsed as my wife supped a coffee, and I came away with several obscure new bands and samplers. Some good, some bad, but that is the fun of music.

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  6. I agree with johngill, HMV's death was inevitable. But I don't think you could have prevented this, even if they had changed things a year, 5 years ago...

    The only profitable part of their business was the concert halls and they sold those a few months back (why? definitely something fishy about that, why sell the only bit of your company that's making money?)

    Rough Trade and their like aren't that profitable at the moment. The East End shop is shored-up by the Beggars Banquet record label, it wouldn't be there if it was trying to survive on its own merits.

    Kids want to buy music in a different way to what we're used to, that's life. As long as they start to buy it again, the business will adapt. The worry is that they never get used to paying for it again and keep on piling their disposable cash into cheap clothes, games, mobiles etc.

    Then what will the music business do?

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  7. I last visited my nearest HMV about six months ago.

    It's in a local retail park and has a Starbucks inside, I had actually gone in to kill some time and get a drink as I was waiting for something to be prepared at another store. While I was sitting in Starbucks, I remembered a BluRay I was after and had a look at both Amazon's price and HMV's price online.

    HMV was a pound more, but I figured that I was more than prepared to pay that to buy the thing now any take it home straight away.

    So on the way out I went and found the disk. Then I put it back on the shelf when I discovered that it was £10 more than HMV's own online price. At first I though that maybe the price had dropped online, but they hadn't re-priced the high street stock yet.

    So I looked at the music and found that the "sale" items were priced slightly higher than Amazon's regular prices (and also places like Tesco and Sainsburys it has to be said) and that the non-sale items were almost twice the price.

    Quite frankly, I can't understand why anyone would buy anything from them, they really priced themselves out of the market, looks like I'll never go back now.

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  8. HMV did read my piece and called me. I met them, rather naively thinking they might welcome my suggestions. Instead they simply (and politely) said "this is why you're wrong". They told me the Oxford Street shop was getting a refurb in a few months, which never happened. It would have included a cafe and a second hand section, but most of it sounded like sticking plaster stuff.

    Thanks for all your kind comments.

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    Replies
    1. In that case, it's definitely their fault, and they can go screw themselves.

      Maybe Rough Trade could buy HMV's Oxford Street store (then they'll have Rough Trade West, Central, and East stores.... perfect)

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  9. Lovely piece - and right about so many things.

    The sad thing is, it's part of a broader picture for culture in general - as you highlighted with the loss of Borders and their huge magazine section and in-store events.

    It's the same with places like Forbidden Planet and comics. I'd love to be able to get vintage Silver- and Bronze-age comics from there but they don't bother with them. They'd rather just have shelves of Dr Who toys, so all the comic shopping was done online.


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  10. Spot on.
    There's an HMV in Horsham, it wasn't too bad when it opened (2006 I think) but I never classed it as a proper record shop. Each time I go in there the CD section has been gets smaller and smaller (and the one in Crawley is even worse, to the extent that the range of music stocked is lamentable. I buy lots of music but HMV said goodbye to me years ago. To be honest I'm surprised they've survived this long.

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  11. It will be even sadder if the Fopp brand (owned by HMV) also disappears from the few high streets it can be found on. For me and many of the people I know, the experience of going into Manchester city centre to browse and buy CDs has been invigorated by the emergence of Fopp (even after its takeover by HMV). If only HMV had applied the virtues of the Fopp experience to its own stores rather than merely just adding it as another business in an already bloated portfolio.

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  12. On the money Bob, and time has only proved you right. Every time I went into HMV in the last few years I noticed more and more the music was being replaced by Apple peripherals and overpriced celebrity headphones. I havent bought music from HMV for over 2 years, while before although I got a lot from independents I would stll get the more mainstream items from HMV.

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  13. Great article. My thoughts as an average buyer and someone who would be sad to see HMV disappear.

    1. Notwithstanding all your valid points, it is hard for HMV to compete with Amazon who are not paying large amounts of tax, right from the off they are on the back foot in trying to price match.

    2. The online HMV shopping experience is clunky, I found the search facility poor, they don't have some slightly more obscure music that even Amazon stock. Their checkout process is cumbersome compared to Amazon. Why do people use Amazon? because it's easy and I say that when I don't even use 1-click. Also, far too many times my online purchases received with cracked cases, maybe I've just been unlucky but it's off putting.

    3. A story from quite a few years ago so maybe things have changed, I popped into the Victoria station store to make a quick purchase. I came out very quickly again without the purchase after seeing the inflated price they wanted due to the store location. In my mind I was left with the impression of HMV being a rip off store.

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  14. I completely agree with you about Fopp. I live in bristol and have found staff in my local branch enthusiastic, knowledgeable and helpful about both music and film.
    I agree with most of the article, particularly the point that shopping in a specialist store should be an experience where you can discover new music and discuss it with people who know, rather than simply attaining the music on offer. However the article has hardly any mention of CDs themselves. Should a store like HMV focus on the vinyl/second hand market and let CDs die out? Should it cater to those (like me) still hanging on to physical copies, but in a digital format? I know that vinyl is currently a hip commodity (even sold in stores like Urban Outfitters) but how long can we expect that to be the case?

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  15. The current HMV is a unpleasant, oppressive mess. It's sheer size and presence on the high street dictates that it's GOT to compete with the supermarkets and appeal to the mass market, but it's "fans" pride themselves on being music connoisseurs and its current format is precisely what they don't want - this is why, in my view at least, they've turned away.

    It's interesting, but bizarrely I've benefitted slightly from it's downfall. Back in November HMV were having a clear out sale, getting rid of "old" stock to make way for Christmas ranges. This old stock included, bizarrely, the recently released limited edition box sets of Blur's back catalogue. All sealed, all pristine, all £3 each. I bought them all up and, as I'm not a Blur fan, stuck them all on the amazon market place and promptly made a tidy profit.

    Equally their recent trade-in scheme also saw me quids in. They were giving you a quid for an old CD and selling it on for £2. I sifted through years of old cd's which are no longer listened to, were gathering dust, and were only selling for pennies on amazon. HMV gave me a gift card to the tune of £80 in exchange - which I promptly spent on Christmas presents (glad I didn't hold onto it). I felt bad at the time, knowing full well I was exploiting a shop struggling to reverse it's fortune - but then I thought about the money I had lost in there over the years, especially those years when their profits were so high Artist's were barely money from their cut of a CD sale. Now of course, I feel bad that it might be going. It can't go. It simply can't.

    Chaps in offices up and down the country are lamenting the loss of HMV, and we all have our own ideas about how we think it could work. None of your ideas (though very good and alarmingly obvious ones) were mentioned in the conversation I had yesterday (instead someone came up with the notion of using 3-D printing to produce in-store "bespoke" vinyl).

    Lots of people care - lots of people want to see it turn around.

    Let's hope someone corporate hear's what it's "fans" are saying.

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  16. Shame they didn't listen to you, but it was probably too late 12 months ago anyway.

    My recent experience with HMV is summed up by the difficulty I had using a giftcard I had been kindly bought for my 40th birthday. I made a specific trip to the Bond Street store to use it only to find that it was now a branch of Desigual. I then didn't have time to walk down Oxford Street to the other one.

    A few months later I came across a tiny branch in Westfield in Stratford where I got asked about once every 45 seconds by overkeen staff members whether I needed any help - probably because they thought that someone as old as me must have early-onset dementia and had wandered in there by mistake. I can only imagine what they would have done if I actually had asked for any help finding anything other than iPod docks, headphones and Iron Maiden T-shirts. Eventually I bought a £25 iTunes card. When I got to the till I discovered that that only cost £20, and not being able to face wasting more of my life trying to use the £5 balance I scanned the shelfs nearby and hurriedly grabbed a book (that I probably won't read) about a British cocaine smuggler and his time in prison. I knew then that I would never go to HMV again.

    I always preferred Our Price when I was younger anyway.

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  17. Wise words- concessions are a great idea would help make pop music cool and interesting again. Maybe not second hand vinyl though as most mainstreamers like shiny new stuff.

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  18. Oddly enough I rarely ever went into an HMV for music and when I did it was because there was something popular that the independents had run out of. My music tastes were catered for by a series of (now gone and forgotten) independent stores. What I had there was a personal relationship with people that understood me and my tastes and helped me discover new artists and even styles.

    As you are so correct about, HMV became a faceless, bland shop front without any real clear identity. It's 'diversification' was one more nail in the coffin and the separation of online from store was insane with offers in one not available in the other

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  19. brilliant writing bob! didn't know you had this blog, thank you for sharing!
    it's funny. i knew it was going to happen. i worked at the HMV mega store in vancouver,BC, canada for almost 8 years and then it shut it's doors in january 2011. we were already in mourning for that company at that point. we sort of had the inside story. their biggest problem was denial. it doesn't surprise me, bob, that when you met with them over your article that instead of embracing your ideas; they were just trying to prove you wrong. even when our huge store closed down, the company tried to tell us that they were going to keep their mall stores going strong. it was just that "mega stores" didn't have the appeal they once did.
    when i was working there i kept thinking of obvious ways to keep the store afloat in my mind. one thing was the store should have tried to connect with community more and promote local music. they were too concerned with the conflict of their "branding"; so they'd never let local bands bring posters or flyers by and display them at our store. that really bothered me. and we also would not consign music by local bands either.
    ---we did try and have a vinyl section for awhile, but again the prices were too ridiculously high.
    and our selection of cd's dwindled over the years to the point of embarassment. we used to have "in store" buyers who really knew their stuff, but then they wanted to streamline everything and have all the ordering done by the head office in toronto by people who were hired for crunching numbers & know nothing about music at all. and that's when our shelves became rife with mainstream crap.

    i could go on and on about all the things that were so wrong about that company. they pay was so low, and the turnover so high, that again they'd hire a lot of staff who weren't knowledgable and lacked passion. there were the handful of people who really knew their stuff & seemed to trade a decent wage for sharing their knowledge & love for music/film. but as the stock became more generic; our specialized services weren't even needed anymore. we'd just end up secretly sending the customers to indie stores that had a better selection of obscure titles.
    the bottom line is HMV managed to be the "last man standing" probably because of some savvy financial decisions at a pivotal time in the industry, but when they became too reliant on the money and marketing schemes - they forgot about the product they were selling and the people who buy it.
    i really have mixed feelings about HMV. having worked for them and being treated rather poorly & unappreciated made me personally somewhat bitter towards them as a company. there's a dark side to me that feels they got what they deserved.
    but putting my personal feelings aside, in many ways it is a sad day to see the concept of the corporate record store chain completely die out. my youth in the 70's & 80's was definitely spent in the multitude of stores we had to choose from in those days (especially in canada and usa where i grew up). we took it for granted that they were everywhere, whenever we needed them. it was a thriving business then. some were better than others. they were never as cool as the indie stores. but they were your trusty friend when you wanted the latest duran duran album for $5.99. i'd go to the indie store for the import 12" mixes. ;)
    yes, i'm sad for HMV in some ways. they had the chance to do something remarkable & prove that a corporate store could withstand the wind of change but they blew it!

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  20. This comment has been removed by the author.

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  21. CORRECTION: HMV megastore in vancouver shut down in january of 2012
    (whoops! i appear to have no concept of time! sorry!)

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  22. Hi Bob,

    Great article, spot on!

    As a music buyer from the Netherlands I loved to go to London a couple of times a year. London (and other cities) had the kind of Mega stores we didn't have in the Netherlands. Virgin Megastore, Tower Records, HMV. Especially HMV was a favourite because the choice was immense! Our Price was great for bargains, Virgin had a great 12" collection, HMV used to have it all!
    But that changed over the years...

    Our Price disappeared, Virgin disappeared, Tower disappeared. HMV was the only one left for me (I'm not really into indie) but they changed. More and more non music related stuff entered the store. DVD's, Blurays, all kind of mp3 equipment, books, magazines, mugs, and more like that. The music sections became smaller and smaller but music was the main reason for visiting HMV.

    In the 90's I could easily spend 2 hours at an HMV Mega store, in 2011 that was reduced to 10 minutes. In the 90's I visited HMV every other day because there was just so much, in 2011 I went to HMV Oxford Street once during my two week stay in London.

    The Mega store was no longer Mega or a Mekka. It was just a department store with a very small music section. A music section with mostly "best offs" and only the popular chart toppers. A back catalogue was very hard to find. Let alone 7" singles or collectables. 3 for a tenner was the rule but I only could find one...

    So the London Mega store turned out to be a major disappointment but the smaller shops were even worse.
    I went to Brighton, Hastings, Tunbridge Wells, Oxford and other cities, found the local HMV but bought nothing... One small row with CD's, hardly any vinyl, no collectables, no exclusive limited editions, they weren't even playing music...

    HMV has slowly become the equivalent of our Dutch "Free Record Shop". A record shop that mainly sells non-music DVD's....

    You are right about so many things Bob. HMV should have changed its policy, its look, its stores, basically they should have changed 200%. How come that FOPP became my favoutite London record store in 2011? It looked a bit like the old HMV. The HMV that sold music. Back at home I discovered HMV owns FOPP. I simply couldn't believe it! Your ideas for a new and improved HMV could (have) safe(d) HMV but, well, computer says clearly no....

    By the way, I also travel to Tokyo on a regular basis and love HMV and Tower Records there. Why? Bacause they sell MUSIC! Great choice, listening posts, in store promotions, etc. Just what I've always liked about HMV in the UK!

    And another by the way: I don't mind paying more than online retailers because buying music in a shop means that after a couple of hours I can enjoy listening to that new bought music at home, with a cup of coffee in one hand and the booklet / artwork in the other hand. For me it's worth the extra quid (or two).

    Ronald
    www.pmachinery.com

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  23. Great article.

    Is this not just a sign of the way we buy but more of 'what we buy' ?

    I'm approaching 50 and remember the wonderful days of varied music ... today it all sounds the same (but, maybe when my dad was 50 he said the same to me).

    We live in a TV reality driven culture, with reality pop stars. When Adam Ant came out with his music, only Smash Hits et al gave you insight to his persona, not 24 hour tv/twitter/'social media' about what colour his urine was this morning.

    Let's face it, music has changed and the way we consume it has changed. I still remember playing a 7 or 12 inch record repeatedly because it excited me so much - not sure that happens today !

    Or maybe I'm just getting old ... !

    Tony

    p.s. St Etienne are one of the true heroes in my catalogue of CD's - the number of miles I have run on a treadmill listening to your Casino Classics album, now if only my knees could hold out !

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  25. When I was a teen in the late 70s I had a Saturday job in the record dept. of a WH Smiths. Before I got the job I had an interview with the department manager quizzing me about my musical knowledge, not just my fave bands and what was in the charts but what I knew about Country and Classical (not much but it was enough). The rest of the staff were mostly kids my age but we were all music geeks, and the girl who ran the Classical section was studying to be an opera singer, so back then even a middlebrow chain like Smiths took selling music seriously.

    First time I ever head 'Unknown Pleasures' was on the stereo of that shop while I was stocking shelves one morning.

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